FAQs
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- FAQs
Frequently Asked Questions
- Mortgage $500,000, 5 year fixed term, Rate 2%
- 2 Years later they sell the property. Penalty (they were not aware of) $20,000
- When you add the penalty the calculated rate they paid to the bank was 3.98%
- They thought they were paying 2% when in reality they ended paying 3.98%
You can purchase a property to live in anytime whether you’re a First Time Home Buyer or not with 5% down up to $500,000.
- 5% down for Property Less than $500,000. (Example $25,000 down payment on a $500,000 property)
- 10% down for amounts above $500,000 to $999,999 (Example $45,000 down payment on a $700,000 property)
- 20% down for properties over $1M (Example $260,000 downpayment on a $1.3M property)
- 25% down or more depending on the lender for properties over $1.5M
This is typically what a person would think. This cannot be further from the truth. You can get a very good approval even if your existing bank said no. Different lenders have different policies for approvals and we study them hard so we know all the little details that make big differences. That is why we named our brokerage “Mortgages Lab”.
In the odd event that we cannot give you any options, we will give you a path, a solution so you can get a mortgage in the very near future.
This is what in theory should happen. In reality a bank would only give you an option. At Mortgages Lab we specialize in comparing with other banks. Sometimes there are promotional rates that are only to new customers, so your own bank would not necessarily give it to you.
On a daily basis we are able to give better options to customers who have been with their own bank many many years. This does not mean you have to change your banking. You can have only the mortgage with another bank, keep your banking with your existing bank and spread the risk, similar to what you do with investments.
When we get an approval, even when we go to different lenders, with your authorization, we only pull your credit once. This protects your credit, it allows you to compare with different lenders and this avoids damaging your credit. Your credit can be damaged only when an applicant go directly to many financial institutions during a prolonged period of time.